Saudi owner-operator of power and water plants ACWA Power has started building a multi-billion-dollar green hydrogen plant that will turn the Gulf Kingdom into major exporter of the green fuel, a Saudi newspaper reported on Tuesday. 

ACWA Power revealed that Phase 1 of the infrastructure and other construction work will cost around $900 million, according to Almadina Arabic language daily, which said the Company made the announcement at a meeting with shareholders on Monday. 

“During the meeting, ACWA Power said that it has started the official construction of the Neom Green Hydrogen plant at an initial cost of $900 million,” the paper said. 

In 2020, ACWA Power had signed an agreement to build the $5-billion hydrogen plant with the US’ Air Products Company and Neom, a major sustainable city under construction in the Northwestern corner of Saudi Arabia. 

The project will produce 650,000 tonnes per day of hydrogen and 1.2 million tonnes per day of green ammonia. The bulk of the products will be exported when the project is commissioned in 2025. 

(Writing by Nadim Kawach; Editing by Anoop Menon)

(anoop.menon@lseg.com)